"The Moscow city court decided not to change the decision - he remains under house arrest," a judiciary spokesman told AFP.
Top theatre and film director Serebrennikov was placed under house arrest last month until October 19, accused of defrauding the state of over USD 1 million in arts funding.
The director - who heads Moscow's Gogol Centre and staged productions at the Bolshoi theatre - has denounced the charges as "absurd".
Critics view the case as the latest crackdown on liberal culture in Vladimir Putin's Russia.
A Kremlin spokesman has denied that the case has anything to do with "politicisation, censorship", saying it is linked to "purely financial questions".
The court ruling today however allows Serebrennikov to walk around his district for two hours every evening, the court spokesman said.
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